What is a refund receipt and when is it issued?
Refund receipt refund is performed when customer requests a refund for already paid products/services. Customer does not agree to keep refunded money in his balance and wants them back to his personal account.
IMPORTANT: Refunds receipts issued from ServiceBridge will NOT affect the customer balance. Refund receipts given from QBO depending on the situation may or may not affect your customer's balance. Please reference this QBO community article if you issued a refund from QBO and noticed the customer balance affected: https://community.intuit.com/questions/1169296-applying-a-credit-note-credit-or-refund-for-a-customer
Creation: Refund Receipt refund can be created by clicking "Refund" button in Payment details page.
QBO sync: Refund is synced to QBO as Refund Receipt.
Customer Credit Balance: Customer credit balance is not affected.
Usage: Refund cannot be applied on invoice, payment or any other transaction.
Authorize.Net sync: Refund is synced to Authorize.Net if refunded amount is transferred to customer’s bank account (refunding a Credit Card or Payment Profile payment).
How to create a refund receipt?
Since refund receipts are created from payments, first we open a payment that we would like to refund to a customer.
Note that payments can be accessed from Accounting, Customer, Invoice, Work Order, Estimate, or from universal search bar.
In the payment view, click on the Refund button.
Make sure that Type is selected to Refund Receipt and account from which the funds are taken is also selected. Refunds must also be issued for some Product or Service. So you can select the 'OFF/ON' switch to view more details and select an item OR you can set a default product that will always be refunded by default. Click here to view step by step on how it can be set by default.
Click the Save button and the refund receipt will be issued. Note that if the refund is done from a credit card connected to authorize.net, then the money will be transferred back into customer’s account, however their balance will not be affected.
If the full amount is refunded then the refund receipt will have a ‘Closed’ status.